BREAKING NEWS for Small Businesses
The CARES Act – the third Coronavirus bill – was signed into law by President Trump on Friday, March 27th.
This bill created the Paycheck Protection Program, a nearly $350 billion program to provide eight weeks of cash-flow assistance to small businesses through 100 percent federally guaranteed loans to employers who maintain their payroll during this emergency. The U.S. Treasury Department, along with the Small Business Administration, are implementing this program, and the information below is provided by the Treasury Department.
New SBA Paycheck Protection Program Application Available NOW
Today, the Small Business Administration and the Department of Treasury announced that they have initiated a mobilization effort of banks and other lending institutions to provide small businesses with the assistance they need.
Small businesses and eligible nonprofit organizations, Veterans organizations, and Tribal businesses described in the Small Business Act, as well as individuals who are self-employed or are independent contractors, are eligible if they also meet program size standards.
- For a top-line overview of the program CLICK HERE
- If you’re a lender, more information can be found HERE
- If you’re a borrower, more information can be found HERE
- THE APPLICATION FOR BORROWERS CAN BE FOUND HERE
Loan Terms & Conditions
- Eligible businesses: All businesses, including non-profits, Veterans organizations, Tribal concerns, sole proprietorships, self-employed individuals, and independent contractors, with 500 or fewer employees, or no greater than the number of employees set by the SBA as the size standard for certain industries
- Maximum loan amount up to $10 million
- Loan forgiveness if proceeds used for payroll costs and other designated business operating expenses in the 8 weeks following the date of loan origination (due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs)
- All loans under this program will have the following identical features:
- Interest rate of 0.5%
- Maturity of 2 years
- First payment deferred for six months
- 100% guarantee by SBA
- No collateral
- No personal guarantees
- No borrower or lender fees payable to SBA
Visit treasury.gov/cares for more information on the Paycheck Protection Program and the SBA’s assistance to small businesses.
Click here for additional information on my website related to Coronavirus, as well as help for individuals and businesses who have been impacted by Coronavirus.
House Republican Whip